Skoda Auto India have announced a price revision across the model range for the second time in 2018, the updated prices will hit showrooms as of the 1st of March 2018. According to a release from Skoda, the price increase is being brought about by revisions to excise duties in the Union Budget 2018. The revision which saw taxes on imported components go up by 5% was likely to affect those companies like Skoda with low percentage of localisation.
However, this will not be the last time Skoda bumps prices this year, the release further mentions that they
will introduce a phase wise increase of prices the first of which will happen on the 1st of March. To bolster this increase in prices Skoda have also introduced , a loyalty bonus of upto Rs 50,000 for existing customers who want to upgrade or refresh their current Skoda car from within the Skoda portfolio. The multi-step price increase will range between 3% – 4% depending on the product and variant in the ŠKODA model range. However, effective 1st March Skoda Auto India will only increase prices by 1 % which translates to an increase of INR 10,000 – INR 35,000 across the entire model range.
Skoda cars already command a premium over the rest of the manufacturers, and this move by union government will surely put a damper on Skoda’s aggressive sales policy for 2018. Which started with their “Buy now, pay later’ plan under which a customer need not pay anything for the first year after he or she is done paying a particular amount of the total cost of the car as down payment.
In the last few months, Skoda have even tried to work in a refresh in their models on offer, with a new Octavia,Octavia VRS and the Skoda Kodiaq. The problem is that all of these cars use large number of components that are important from countries not under the ASEAN trade agreement. While for the government this props the ‘Make in India’ scheme, but above and beyond that it will see a lot of manufacturers being forced to bump prices.
Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.